Purpose of Letter of credit (“LC”) is to give payment security to the beneficiary The applicable rules of UCP A generic checklist is given below to assist parties involved in the transaction in . Certificate of Origin. An LC is a contract by which a bank agrees to pay the beneficiary upon the Credits (“UCP”) are international rules published . such as insurance documents and certificates. the LC. 2. Bills of lading are not clean – meaning they bear. As an exporter, how accurate are the letter of credit documents that Practice for Documentary Credits (UCP ), transport documents, A Certificate of Origin is a signed declaration stating the country of origin of the goods.

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If you continue to use this site we will assume that you are happy with it. Banks will check solely that the reference in the credit is shown in the invoice presented.

The Bill of Lading must show that the goods are actually on board a named vessel and signed in accordance with the relevant UCP article see above. Must be issued by a named carrier or his authorized agent. Indicate the date of issuance. Must indicate the name of the consignor and address.

Bill of Exchange Draft It should bear a date.

Bear in mind, as mentioned, that over half of credit documents are rejected on first presentation oribin the banks. It should be drawn unconditionally and should be free from any extraneous conditions and should contain the reference to LC. Must indicate the name of the assured. Issued for goods sent by courier or parcel post, a Courier or Parcel Post Receipt evidences that the goods have been received for despatch.


Letters of Credit – Checklist and Guide for Export Sales Executives

The requisite and stipulated documents are originals or marked as originals and appear to be signed. Goods description does not conflict with the documentary credit. If so whether it was permissible under LC.

Similarly with your insurers if insurance is to be covered by you.

How to Prepare and Check Letter of Credit Documents | Buyer’s Credit & Supplier’s Credit

Be signed by the named carrier or his authorized agent. Where there are any inconsistencies with this guide, UCP will prevail. Sorry, your blog cannot share posts by email.

In order to ensure you have all the information necessary for negotiating a sales contract you my wish to consider the following points:. This checklist is intended to help export sales representatives establish a letter of credit with the customer that is clearly understood. Similarly, transport documents marked as Original, Checklsit, Triplicate etc. Oigin Scrutiny All documents called for in LC are submitted. Bill of Lading date.

Road, Rail or Inland Waterway Transport Document Signed as required by UCP article 24, noting that if an agent signs on behalf of a carrier, the agent must be named and indicate the capacity in which it is signing i.

If ocean transport forms only a part of the complete journey, a Multimodal Transport Document or Combined Transport Bill of Lading can be issued to cover all oriign of the journey. Meet all other stipulations of the credit. It must be dated.

A Waybill is a document issued by the carrier of the goods or its agent. It should not include cbecklist charges which are not permitted by LC. Documents, where necessary and stipulated, are dated. Legter Bill of Lading is the traditional instrument used in connection with sea shipments. Successive surveys by SITPRO and others have shown that well in excess of fifty percent of documents presented by exporters to banks for payment under letters of credit are rejected on first presentation.


It must confirm to facts like IEC No. It should show deduction towards agency commission payable etc. Must cover all additional risks as specified in the LC.

Appear to indicate the name of the carrier. Unlike Bills of Lading, Waybills are neither negotiable nor documents of title. It also refers to less secure methods of payment and other responsibilities assumed on overseas visits.

Letters of Credit – Checklist and Guide for Exporters

Must indicate brief details of the goods oeigin. Ensure these detailed but vital points are settled before concluding discussions -you can save problems with discrepancies later. Name of the vessel and voyage number. Must comply with all other specific requirements of LC. You are commenting using your Twitter account.

We strongly recommend you provide your customers with copies of these guides to back-up your own discussions with them. The document should show the name of the consignee, date of despatch and bear the stamp of the issuing authorities.

The Policy states the amount of the insurance, the goods insured, the risks covered and all the conditions of the insurance.